Your Car Finance

If you purchased a vehicle on finance during, or after 2007 then it is likely that the car finance was mis-sold to you due to the car dealership failing to disclose commission they were paid by the lender for setting up your car finance.

It is estimated that up to 99% of the 31.7 million car finance agreements arranged by car dealerships since 2007, included a commission payment.*

Analysts estimate that up to £30 billion compensation could be due to consumers, due to the widespread non-disclosure of commission.

*See: https://www.fca.org.uk/publication/consultation/cp24-22.pdf , Annex 2, Pg30.

Your Lender may not have to respond to your claims until after 04 December 2025.

The Financial Conduct Authority are presently undertaking a review of commissions paid in the motor finance industry, which is contingent on cases that are also being considered by the Courts. In light of this, the Financial Conduct Authority has paused the requirement for Lenders to respond to claims about some motor finance commission until 04 December 2025.

The Financial Conduct Authority has indicated that they may have completed their review as early as May 2025 and if so, would seek to end the pause early. We expect to receive a further update regarding this by 31 May 2025.

The amount of compensation you may be entitled to is dependent on several factors, including the amount of finance your lender provided, the date the finance was taken out, the duration of the agreement, the interest rate you paid and the value of the commission payment your Lender made to the car dealership.

The Financial Conduct Authority, confirmed in their publication Our work on motor finance – final finding – March 2019 that on a typical motor finance agreement of £10,000, a Discretionary Commission Arrangement typically resulted in consumers being overcharged £1,100 over a four-year agreement.*

*See: https://www.fca.org.uk/publication/multi-firm-reviews/our-work-on-motor-finance-final-findings.pdf s. 2.15, Pg9.

You do not have to use a law firm, or claims management company to make your claim. You can claim directly yourself for free to your lender, and then the Financial Ombudsman.

Although you can make your claim directly, you may find it preferrable to use a professional representative, like us, to help you manage the claims process due to our expertise in this area, or simply because you do not have the time.

If we are successful in obtaining an offer or payment of Compensation, then you pay us a Success Fee which is calculated based on the amount of Compensation your lender offers per credit agreement. The table below details the Success Fee percentage applicable to different bands of Compensation, and the maximum total Success Fee for each compensation band.

The percentages and amounts in the table above are exclusive of VAT, which is charged at the prevailing rate.

If you have an outstanding balance with your Lender they may use all, or part of, your compensation to pay this outstanding balance meaning that you may not receive any cash “in hand”. In this event, our Success Fee will still be calculated against the full compensation amount.

Example 1: If your Lender makes an offer of £1,000 compensation and you have no outstanding balance with the Lender, your Lender will pay us £1,000. Of this, £360 will be deducted to pay our Success Fee and VAT, and £640 will be paid to you.

Example 2: If your Lender makes an offer of £1,000 compensation and you have an outstanding balance of £800 with the Lender, your Lender may use the compensation offered to pay the outstanding balance meaning they will only pay us £200. We would use this £200 toward our Success Fee and VAT, which would leave a balance of £160 payable by you.

If you have been introduced to us via a third-party, we will pay them a fee for this introduction. This fee is usually a percentage of our Success Fee for any successful claim. This fee is paid directly from us to the third-party at no cost to you.